Nearing the Limit
The housing market has suffered from excess demand and limited supply for years, causing a sharp increase in home prices. Add continually increasing interest rates to the mix, and eventually something has to give.
The turning point may have arrived.
The S&P CoreLogic Case-Shiller report shows that home prices are still rising, but at the slowest pace in almost two years. For almost a year, the National Case-Shiller Price index has risen by an annualized rate over 6% – well outpacing wages as well as inflation. Meanwhile, existing home sales were down 3.4% in September and down 4.1% from the previous year, according to the National Association of Realtors (NAR) – the lowest mark since November 2015.
An out-of-balance market may be adjusting toward normalcy. That’s potentially good news for you, if you keep your finances in decent shape.